Yellow Knight A company that was once making a takeover attempt but ends up discussing a merger with the target company. Yellow knights have various reasons for backing out of the takeover attempt, but frequently are attributable to the target company's ability to fend off takeover. The "yellow" in "yellow knight" may refer to the color's association with cowardice. Since a yellow knight backs down from a takeover attempt and retreats to merger discussions, a yellow knight may be viewed as weak. Investopedia Explains: In mergers and acquisitions (M&A), various colored knights are used to identify the nature of a takeover or...
Related to "Yellow Knight" | Reverse Mergers: The Pros And Cons A reverse merger (also known as a reverse takeover or reverse IPO) is a way for private companies to go public, typically through a simpler... | |
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